chapter4 - BRIEF EXERCISE 4-1 The steps in using a work...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: BRIEF EXERCISE 4-1 The steps in using a work sheet are performed in the following sequence: (1) prepare a trial balance on the work sheet, (2) enter adjustment data, (3) enter adjusted balances, (4) extend adjusted balances to appropriate statement columns and (5) total the statement columns, compute net income (loss), and complete the work sheet. Filling in the blanks, the answers are 1, 3, 4, 5, 2. BRIEF EXERCISE 4-2 GIOVANNI COMPANY Work Sheet Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Prepaid Insurance Service Revenue Salaries Expense Accounts Receivable Salaries Payable Insurance Expense 4,000 25,000 58,000 (c) 800 (b) 900 (a) 1,200 (a) 1,200 (b) 900 (c) 800 2,800 25,800 900 1,200 58,900 800 25,800 1,200 58,900 2,800 900 800 BRIEF EXERCISE 4-4 Dec. 31 Service Revenue.............................................................................. 50,000 Income Summary................................................................. 50,000 31 Income Summary............................................................................ 30,000 Salaries Expense................................................................... 26,000 Supplies Expense.................................................................. 4,000 31 Income Summary............................................................................ 20,000 Retained Earnings................................................................ 20,000 31 Retained Earnings.......................................................................... 2,000 Dividends.............................................................................. 2,000 4-1 BRIEF EXERCISE 4-5 Salaries Expense 26,000 (2) 26,000 Supplies Expense 4,000 (2) 4,000 4-2 Retained Earnings (4) 2,000 (3) 20,000 Bal. 18,000 Common Stock 30,000 Bal. 30,000 Service Revenue (1) 50,000 50,000 Dividends 2,000 (4) 2,000 Income Summary (2) 30,000 (3) 20,000 (1) 50,000 50,000 50,000 BRIEF EXERCISE 4-6 July 31Green Fee Revenue..................................................................................... 14,000 Income Summary.................................................................. 14,000 July 31Income Summary........................................................................................ 10,700 Salaries Expense................................................................... 8,200 Maintenance Expense........................................................... 2,500 Green Fee Revenue Date Explanation Ref. Debit Credit Balance 7/31 Closing entry 14,000 14,000 Salaries Expense Date Explanation Ref. Debit Credit Balance 7/31 Closing entry 8,200 8,200 Maintenance Expense Date Explanation Ref. Debit Credit Balance 7/31 Closing entry 2,500 2,500 BRIEF EXERCISE 4-8 The proper sequencing of the required steps in the accounting cycle is as follows: 1. Analyze business transactions....
View Full Document

This note was uploaded on 01/25/2011 for the course AC 215 taught by Professor Don during the Winter '10 term at City University of Seattle.

Page1 / 43

chapter4 - BRIEF EXERCISE 4-1 The steps in using a work...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online